JOHNSON & JOHNSON.Corporate governance

       Introduction

Johnson & Johnson (J&J) is an American company, engaged in the research and development, manufacture and sale of a broad range of health care products. It is listed on the NYSE and its common stock is a part of the Dow Jones Industrial Average.

The corporation conducts business in 60 countries of the world focusing on the production of the goods related to human health and well-being. With more than 250 subsidiary companies worldwide J&J Corporation employs approximately 118,000 people having the headquarters in New Jersey, United States. 

Today the key people in the life of the company are the chairman of the board, William Weldon, and CEO, Alex Gorsky.

Founded in 1886 by the Johnson’s brothers, the company started with a production of ready-to-use surgical dressings. In 1920s the list of the products expanded when the company begun to manufacture skin and hair care. In 1941 a separate division for surgical products was created, which later became known under the title of Ethicon. In 1970s the corporation launched a line of products for women’s health care needs and toiletries. Later the shelves of the stores all around the world were loaded with baby care goods. And in recent years, J&J has expanded into such areas as biopharmaceuticals, orthopedic devices, nutritionals and internet publishing.

Difficulties Johnson & Johnson is facing?

During a routine inspection at production facility in USA on April 19, 2010 investigators found a few "manufacturing deficiencies" that led to manufacturing mistakes (New York Times, April 25, 2010).

It appeared that some products contained "a higher concentration of active ingredients that is specified", other contained "inactive ingredients that may not meat internal testing requirements" (Food and drug administration FDA). Following the line of examinations, it was decided by the board of Johnson & Johnson to recall some of the products from the shelves in the 12 countries.

In April 2012 company officials revealed that efforts to fix the manufacturing products that caused the recalls where taken longer than expected and some brands will not return to the shelves until 2013. The recalls and lost market share have cost the company $1,5bln. Also, to retool the Lordstown fabricating plant, J&J spent about $100mln (Wall Street Journal).

In April 2011 the company pleaded guilty in bribing European doctors and agreed to pay $70mln in fines (Telegraph, April 2011). In April 2012 a judge in Arkanzas ordered Johnson & Johnson to pay $1,2bln in fines for minimizing dangers associated with Risperdal, and antipsychotic drug.

Business Aims of Johnson & Johnson

According to Johnson & Johnson official website "People are our greatest assets". Attracting, developing and retaining a base of employees that reflects the diversity of Johnson & Johnson customers is essential to the company's success.

For a long time the company controlled the bigger part of health care market and produced a wide range of medical goods.

The Company is identified to have a tall organisational structure. It is organized into three core business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics, each of which has more departments in a command.

·         Consumer branch includes a broad range of products used in the baby care, skin care, oral care, wound care and women’s health care fields, as well as nutritional and over-the-counter pharmaceutical products and wellness and prevention platforms. These products are marketed to the general public and sold both to retail outlets and distributors throughout the world.

·         The Pharmaceutical segment includes products in the following areas: anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management and virology. These products are distributed directly to retailers, wholesalers and health care professionals for prescription use.

·         The Medical Devices and Diagnostics segment includes a broad range of products distributed to wholesalers, hospitals and retailers used in the professional fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. These products include Biosense Webster’s electrophysiology products; Cordis’ circulatory disease management products; DePuy’s orthopaedic joint reconstruction, spinal care, neurological and sports medicine  products; Ethicon’s surgical care, aesthetics and women’s health products; Ethicon Endo-Surgery’s minimally invasive surgical products and advanced sterilization products; LifeScan’s blood glucose monitoring and insulin delivery products; Ortho-Clinical Diagnostics’ professional diagnostic products and Vistakon’s disposable contact lenses.

To hold a sustainable competitive position Johnson and Johnson intends to maximize the global power of diversity and inclusion to drive superior business. In order to achieve the above, the company set out a list of the following steps:

·         Develop a skilled, high performing workforce that is reflective of the diverse global marketplace

·         Forster inclusive cultures that embrace  the company's differences and bring innovation to accelerate growth;

·         Work with business leaders to identify and establish targeted market opportunities for consumers across diverse demographic segments;

·         Cultivate external relationship with professional, patient and civic groups to support business priorities.

However, after a line of scandals burst in the last two years the aims of the company has changed radically.  In April 2012, in one of the interviews of New York Times Mr Gorsky, CEO of the Johnson and Johnson, stated that the company "needs to rethink the ways it brings drugs to market, expand its reach into global markets and rebuilt the consumer confidence by returning recalled brands to pharmacies shelves".

New Corporate Governance Structure and its advantages

Setting up a new governance structure, Johnson &Johnson intends to change negative attitude of consumers, investors and shareholders towards the company, by portraying itself as willing to make extensive changes, while simultaneously reassuring consumers that its existing products are safe. With the same stabilize and consolidate its position on market.

Making changes to the existing structure of corporate governance, Johnson & Johnson will prove the public that the company conducted not only the external changes in a form of improvement of manufacturing conditions, but also internal changes in the form of management process and its regulations.

Johnson & Johnson might consider such step as recruiting new specialists in the area of production monitoring. Thus the company will ensure the public there is no more need for a concern with regard to the fraud issues.

The new Corporate Governance Structure will benefit the company in the following:

·         Bring corporate success and economic growth;

·         Return investors confidence as a result of which company can raise capital efficiently and effectively;

·         Lower the capital costs;

·         Bring positive impact on the share price;

·         Minimize wastages, corruption, risks and mismanagement.

New Corporate Governance:

At this stage the corporate governance of Johnson & Johnson adopted the guiding principles:

·         Maintain a well-designed system of internal accounting control;

·         Encourage strong and effective corporate governance from the board of directors;

·         Continuously review the business results and strategic choices;

·         Focus on financial stewardships.

Board Composition and its responsibilities

1. The number of Directors must not be less than twelve (including the Chief Executive Officer). Normally at least one third of the Board should be Executive Directors employed, full time by the Society in key senior management positions.

2. The Board should include at least two third of Non-Executive Directors (including the Chairman), where at least two of which must have the requisite personal skills for the office of Chairman.

These skills should include:

sufficient experience, stature and reputation in financial services, commerce, industry, public sector or professional life to command respect as Chairman of a major financial institution;

- professional and/or business management skills, preferably gained in a large commercial, industrial or public sector organisation;

- experience of relationships at Board level in one or more major companies or bodies;

- intellectual strength, integrity and an ability to consider and discuss issues laterally and strategically;

- awareness of political, regulatory, market and consumerist issues together with an understanding about mutuality;

- interpersonal skills and an ability to make good judgements of people;

- a willingness and availability to serve as Chairman and sufficient time to devote to those duties for a minimum of 5 years;

3. A Director elected by the Board to the office of Chairman should expect to serve between 3 and 6 years in such office.

4. In order to appoint a new Chairman, the Nomination Committee should prepare a job specification, including an assessment of the time commitment expected, recognising the need for availability in the event of crises. A Chairman's other significant commitments should be disclosed to the Board before appointment and included in the annual report. Changes to such commitments should be reported to the Board as they arise, and stated in the next annual report.

5. Non-Executive Directors should be persons with similar skills (although not necessarily to the same extent or level) as are required for the office of Chairman, combined with relevant skills and knowledge with regard to the age and experience. These must be appropriate to:

- direct the general business activities of the Society (and its subsidiaries) and,

- be able to constitute specialist Committees from amongst its own members (i.e. finance, distribution, marketing, retailing, etc).

6. Non-Executive Directors should serve more than 9 years, unless a serving Chairman seeks election as a Director for a third time.

7. Individual Directors must be free of any conflict of interest and are required to disclose their business interests to the Board and Committees of the Board on regular basis.

8. Non-Executive Directors should be prepared to review their effectiveness (e.g. with the Chairman) and (if appropriate) to undertake any training and development that would help to enhance their contribution to the quality of direction by the Board.

9. The Chairman should address the weaknesses of the Board and, where appropriate, propose new members to be appointed to the Board. He also may seek the resignation of Directors (if such act is in the interests of the company only).

10. There should be a sufficient contact between the board members and Society members so to understand the issues and concerns and keep in touch with member opinion. Such communication should be in most practical and efficient ways (i.e. AGM, visits to the factories and plants, etc).

11. The board of direction should have 40% representatives of a female sex as a compulsory condition.

12. At least one representative originating from an overseas market should be included to the list of board members (i.e. Asian, European, African, etc).

Executive remuneration

According to European Corporate Governance Institute: "the financial institution should adopt an overall remuneration policy that is in line with its business strategy and risk tolerance, objectives, values and long-term interests" (ecgi.org). In order to attract skilled individuals, the control functions should be rewarded.

Based on the new Corporate Governance Structure, Executive Remuneration policy should be as follows:

·           Excessive risk-taking should not be encouraged;

·           The aim of any policy should be thus so to align personal and company objectives, including the overall business strategy, company values (compliance culture, ethics, etc).

·           The company should not approve actions where individuals take risks in excess of the business's risk tolerance. It is in the interests of the company at all times give due considerations to the longer term.

·           Control functions (i.e. Internal Audit, Risk Control and Compliance) should be adequately compensated in accordance with their own objectives;

·           The remuneration policy should be transparent internally and adequately disclosed externally for a public consideration;

·           All executives should have an access to the remuneration policy. They should know the criteria used to determine remuneration;

·            The appraisal process should be properly documented and transparent to the executives involved;

·           The company should be able clearly provide its remuneration policy to its authority upon request (This may include, for example, a remuneration policy statement which is subjected to regular review).

·           The board of directors should approve the principles of the overall remuneration policy of the company. The implementation of the remuneration policy should be subject to central and independent review.

·           Remuneration should be based on a combination of individual and collective performance (where defining individual performance should involve identifying: skills acquired, personal development, commitment to the business strategies, compliance with the company's controls and systems and contribution to the performance of the team) ;

·           Bonuses should be calculated based on a measure of performance which is adjusted for risks and the cost of capital;

·           The remuneration of non-executive directors should not be linked to the financial short term results of the company. Other factors, such as the time invested and their respective responsibilities should be considered;

·           The relation between bonus and base pay should be of reasonable proportion;

·           Base pay may be represented in a form of cash pay award;

·           Bonus payments of significant size should be represented in the following form only: company shares, options or other funds held in a trust or similar account;

·           Big bonuses should not be awarded purely in up-front cash (Up-front bonus payment will be considered as fraudulent activities)

Evaluation of Board and Management

(i) Board

Evaluation of the board performance is beneficial as it determines and approves board practices and procedures. There are two ways of doing so:

·         Self-evaluation (process carried out by the board of the company itself

·         Involvement of an independent body that will perform evaluation process (i.e. Institute of directors in Ireland - company, providing  a board performance evaluation service)

Self evaluation should be performed as follows:

 - reports completion and interviews conduction should be performed by an independent body (i.e. member of audit, non-executive director from another institution, etc);

- All directors should be briefed where general questions are addressed (opinions and view, with regard to other members of the board);

- Questionnaires, addressing the key areas of the business should be completed by each member of the board. The key areas should include: strategy, business principles, risk management and internal control, performance and measurement, stakeholder management and board practice;

- Assessment and evaluation of performance of every member of the board should be carried out. This should involve review of contributions made throughout a whole year, decisions made, risks taken and problem solving.

- Report on each member of the board should be completed and filed into one final report;

- The whole board should be involved in reviewing the final report in order to identify strengths and weaknesses of the board;

- As a result of such reviewing, the board should develop a plan on addressing the weaknesses of the board members so to improve productivity of the board as a whole.

(ii) Management

Process of management evaluation should be conducted by the members of board as follows:

- gather information on every manager from other managers, customers and employees;

- collect documentation with regard to performance, disciplinary actions and achievements of the managers;

- question the managers;

- request a self-evaluation from all managers;

- compile a report on each manager and file into one final report;

- review the report and identify weaknesses and strengths of the management;

- develop a plan on how to resolve the weaknesses and improve the management productivity.

Related articles:
JOHNSON & JOHNSON 1
JOHNSON & JOHNSON II.HR

JOHNSON & JOHNSON II.HR

SECTION I

Introduction

Johnson & Johnson is an American company, engaged in the research and development, manufacture and sale of a broad range of health care products. Johnson & Johnson (J&J) is public type company and is listed on the NYSE. Its common stock is a part of the Dow Jones Industrial Average.

The corporation runs business in 60 countries around the world focusing on the production of the goods related to human health and well-being. With more than 250 subsidiary companies worldwide, 139 manufacturing facilities occupying approximately 21.8 million square feet of floor, J&J Corporation employs approximately 118,000 people (fiscal2012). Its headquarters is located in New Brunswick, New Jersey, United States. The key persons in the life of the company are the chairman of the board, William Weldon, and CEO, Alex Gorsky.

Founded in 1886 by the Johnson’s brothers, the company started with a production of ready-to-use surgical dressings. In 1920s the list of the products expanded when the company begun to manufacture skin and hair care. In 1941 a separate division for surgical products was created, which later became known under the title of Ethicon. In 1970s the corporation launched a line of products for women’s health care needs and toiletries. Later the shelves of the stores all around the world were loaded with baby care goods. And in recent years, J&J has expanded into such areas as biopharmaceuticals, orthopedic devices, nutritionals and internet publishing.

Within the United States, 8 facilities are used by the Consumer segment, 10 by the Pharmaceutical segment and 34 by the Medical Devices and Diagnostics segment, each of which has more departments in a command.

·                  Consumer branch includes a broad range of products used in the baby care, skin care, oral care, wound care and women’s health care fields, as well as nutritional and over-the-counter pharmaceutical products and wellness and prevention platforms. These products are marketed to the general public and sold both to retail outlets and distributors throughout the world.

·                  The Pharmaceutical segment includes products in the following areas: anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management and virology. These products are distributed directly to retailers, wholesalers and health care professionals for prescription use.

·                  The Medical Devices and Diagnostics segment includes a broad range of products distributed to wholesalers, hospitals and retailers used in the professional fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. These products include Biosense Webster’s electrophysiology products; Cordis’ circulatory disease management products; DePuy’s orthopedic joint reconstruction, spinal care, neurological and sports medicine  products; Ethicon’s surgical care, aesthetics and women’s health products; Ethicon Endo-Surgery’s minimally invasive surgical products and advanced sterilization products; LifeScan’s blood glucose monitoring and insulin delivery products; Ortho-Clinical Diagnostics’ professional diagnostic products and Vistakon’s disposable contact lenses.

Definition of Human Resources Management

There are two different definitions of Human Resources Management. The first definition states HRM is the "process of managing people in organizations in a structured and thorough manner"(MSG). This approach includes the fields of recruitment people (staffing), retention of people, pay and perks setting and management, change management, performance management, leaving the company. Usually it is identified to be the traditional definition of Human Resources Management. Some experts define it as a modern version of the Personnel Management function that was used earlier.

The second definition of HRM explains "the management of people in organizations from a macro perspective" is managing employees in the form of a collective relationship between management and subordinates (MSG). Such definition focuses on the outcomes and objectives of the HRM function. This means that the HR function in modern organizations is associated with the ideas of people development and a focus on making the “employment relationship” effective for both the management and employees.

Thus, uniting them in one sentence, personnel management is essentially orientated on “workforce” whereas human resource management concentrates its attention on “resource”.

Nowadays, the HR managers are no longer considered to be the people who are responsible for the activities described in the traditional way. In fact, most organizations have different departments dealing with Recruitment, Retention and Payroll. Instead, the HR managers are responsible for the management objectives, managing employee expectations and coordinating both to ensure employee fulfilment and realization of management objectives.

Introduction to HR department of J&J

In 2005, the American College of Occupational and Environmental Medicine presented Johnson & Johnson with the Corporate Health Achievement Award. J&J was selected for having the healthiest workplace environment and employees in the US, on the basis of four parameters – Healthy People, Healthy Environment, Healthy Company and Overall Management (The New York Times). In 2008, the New Jersey Psychological Association awarded J&J with the Psychologically Healthy Workplace Award for its commitment to workplace well-being and developing a psychologically healthy work environment for its employees (WS Journal).

Both awards were given to J&J for its continuous endeavour to create a healthy work environment because the company not only provided employees with assistance programs and benefit packages but also created a few family-friendly policies and offered a number of useful professional development opportunities to its employees.

 All work was done on the basis of the Health and Wellness Program (HWP), which was developed in 1995 and introduced in practice only in 2000. The program benefited both Johnson and Johnson Company and its employees. According to Annual Report 2005 the corporation "saved $8.5 million per year in the form of reduced employee medical claims and administrative savings". Moreover, throughout two years after implementing HWP, the company received a decline of 15% in employee absenteeism rate.
The company employees had "less and shorter long-term medical claims, their disability costs were lower and their perceived personal productivity, job and life satisfaction levels were higher (Annual Report 2005).

HR structure of Johnson & Johnson.

Human Resources Department of Johnson & Johnson consists of 4 following sub departments: employment department, training department, wage and salary department and welfare department , where each of them has a similar structure.

SECTION II:

Functions of HRD in J&J

Each of sub departments perform its own functions and have its own responsibilities, however some of them are very relevant and may overlap.

1.      The employment department is responsible for:

¨      staff recruitment and selection,

¨      staff transfer, and

¨      employee promotions.

2.      The training department provides

¨      staff training and development,

¨      staff performance management,

¨      job analysis.

3.      The wages and salary department conducts

¨      statutory deductions,

¨      tax returns and

¨      pay slip production.

4.      The welfare department regulates

¨      trade unions,

¨      staff welfare,

¨      staff health, safety and security.

Training

Making training as one of its main priorities, J&J management created training department within HR department, where it developed some key programs in order to further develop their employees on fitting their effectiveness better.

The first program is formal training, which depends on where the manager lives. Employees attend a training school depending on a place of work: Americas, Europe or Asia-Pacific.

The second program integrates the training into the company and makes it an in-house operation. This is a very smart step, as it enables managers to gain real life experience within the company and deal with real problems that have arisen. J&J built a management training program from nothing, having no base to borrow from. Such innovative contribution to the system became an achievement in satisfying the needs of the organization and learning how to integrate a training program with not just the regional but also the global needs.

The new training program includes many sub programs, such as ethics training and what J&J calls "stretch assignments". However most of them are connected into the last sub program, named as Global Coordination and Development.

The ethics training is a very important part of the management process. This teaches managers how to apply "Honeywell’s three R’s" no matter what problem arises, hence keeping the "company's integrity intact"(J&J official website). These three R’s are as follows:

- Recognize a situation,

- Raise the issue or situation to the appropriate levels, and

- Resolution of the two above.

The ethic training applies also to the recruitment process which helps to compare the values of perspective employees to the leadership values, which will be in use by any J&J employee. In other words, leader will be most effective when his or her characteristics match the characteristics of the situation and followers. Such training creates a new corporate culture and standards of leadership.

The second sub program is "stretch assignments", according to which a high potential manager will not be assigned to a task which they did well earlier, but they would be assigned to a different more difficult task, in order to speed up the growth of that manager. This attitude focuses on creating dynamic leadership.

The main point of all these training campaigns is the global coordination and development program, which connects all the other programs together in order to achieve a global thinking for high potential executives.

The program itself consists of two stages. First is creating of work groups, which are picked by each company chairmen and are assigned to spend three weeks abroad working on business issues. At the end each group must present a solution. The second part of the program is attendance of executive conference sessions (meetings of global franchise leaders). The main idea of this is to work abroad effectively and derive globally effective solutions groups and employees, particularly those who need to prove the ethics and leadership skills that they learned at J&J.

The executive conferences and work groups provide the chance for executives to broaden their global managing skills by working with other executives from different regions enabling them to reach not just a regional perspective but also a global managing view. Because J&J is a global company, its global issues cannot be solved by regional managers.

Selection

Another key factor within a strong organisation is a careful screening and selection of new employees. This is done by teaching the human relation department to compare the values of the potential employee to those of the company and only choosing those candidates that fit the structure of the company and will support the values in all aspects of business for J&J. The main distinctive feature of J&J selection and recruitment policy is that they rare resort to recruitment and different outsourcing agencies.

The selection Process of employees is conducted by the employment department in six steps:

1.   Preliminary Interviews (screening interviews) - are used to eliminate candidates who do not meet the minimum criteria laid down by the organization. The skills, educational and family background, experience and interests of candidates are examined during screening interviews. Preliminary interviews, unlike the final interviews, are conducted in less formal and planned way. The candidates are given a brief about the company and the job profile that also examines how much the candidates know about the J&J.

2.   Application forms - The candidates who passed the preliminary interview are required to fill in application forms. These contain questions about such personal details as: age, qualifications, reason for leaving previous job, experience, etc.

3.   Written Tests - employment department conducts various written tests during selection procedure, which cover next topics: aptitude test, intelligence test, reasoning test, personality test, etc. All these tests are used to objectively assess the potential candidate and provide unbiased account.

4.   Employment Interviews - is face to face interaction between the interviewer and the potential candidate .They are used to find whether the candidate is best suited for the required job or not. However, the competencies of the candidates during these interviews cannot be judged and they may be biased sometimes.

5.   Medical examination - a series of medical tests are conducted to ensure physical conditions of the potential employee in order to decrease chances of employee absenteeism and reduce finance loss. Most of J&J structures have their own medical centers or offices, which provide all required types of tests and examinations.

6.   Appointment Letter - it is the last stage where a reference check is made about the candidate selected after which he/she is appointed by giving a formal appointment letter.

Recruitment

J&J mainly conducts recruitment in three different ways:

1.   Employment at Facility Level - a source of recruitment when the applications for vacancies are presented on bill boards outside the Facilities or at the Gates. Such type of recruitment is applicable generally for factory workers or office clerks.

2.   Advertisement - takes an important place in recruitment procedure of J&J. The main sources are internet web sites such as Twitter, Facebook, LinkedIn and newspapers. The biggest advantage of advertisement is that it covers a wide area of market. 

3.   Campus Recruitment - there are certain professional Institutions, which serve as a source for recruiting graduates from these institutes. They have special recruitment cells which helps in providing jobs to candidates.

Job analysis

A personnel mangers of Training department carry out analysis in two ways:

·                  Job description

·                  Job specification

JOB DESCRIPTION is provided in the shape of factual statement of job contents and includes duties and responsibilities of a specific job. The preparation of job description is conducted before a vacancy is advertised. It tells in brief the nature and type of job.

This statement covers all those facts which are related to a job such as:

·                  Designation of job and location in the concern;

·                  The nature of duties and operations to be performed in that job;

·                  The nature of authority- responsibility relationships;

·                  Necessary qualifications that are required for job;

·                  Relationship of that job with other jobs in a concern;

·                  The provision of physical and working conditions or the work environment required in performance of that job.

JOB SPECIFICATION is a statement which covers minimum acceptable human qualities required performing a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner and helps in hiring an appropriate person for an appropriate position.

 The contents of statement are as follows:

·         Job title and designation;

·         Educational qualifications for that title;

·         Physical and other related attributes;

·         Physique and mental health;

·         Special attributes and abilities;

·         Maturity and dependability;

·         Relationship of that job with other jobs in a concern.

Appraisal

Training department, responsible for staff appraisal, conducts it in two different ways:

·          Ranking Method

Personnel managers rank their subordinates on overall performance by putting employees in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group.

                       

·      Critical Incident techniques

The managers prepare lists of statements of very effective and ineffective behaviour of an employee. Any incidents or events show the outstanding or poor behaviour of employees or their job. The personnel managers keep files for each employee, where they periodically record critical incidents of the workers behaviour. At the end of the rating period, these recorded incidents are used in the evaluation of the employee's performance. However Negative incidents may be more noticeable than positive incidents with the same leading to an individual being ranked below the mark that he/she deserves to be.

SECTION III

Behavioural theories

There are two behavioural theories that have direct applicability as to business world in general and as to particular J&J Company's policies.

Maslow theory

The basis of Maslow's motivation theory is that people are motivated by unsatisfied needs, and that some lower factors should be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. As soon as people satisfy these needs, they move towards growth and self-actualization. Satisfying needs is healthy, while preventing satisfaction makes people spiteful or sick.

On applying Maslow theory to works carried out by the Human Resources Department at J&J we can see the next evidence:

ü Physiological Motivation: ample lunch breaks, quite high salaries that allow employees to buy life's essentials;

ü Safety Needs: safe working environment and job security;

ü Social Needs: a feeling of acceptance and belonging (invitations to the events, rewards presentations, etc);

ü Esteem Motivators: recognition of achievements, where employees feel valued and appreciated (annual Johnson medal award, compensations, bonuses);

ü Self-Actualization: challenging and meaningful work training-conferences (for top managers and executives) which enable innovation, creativity, and progress according to long-term goals.

Herzberg Theory

This "Theory of motivation" or "Two-factor theory" is based on the idea that motivation can be split into hygiene factors and motivation factors.

The absence of Hygiene Factors may discourage as well as affect the level of dissatisfaction. These factors are rarely quoted as creators of job satisfaction. These are:

·      supervision(at J&J-consistent personnel managers, existence of Mentor groups);

·      interpersonal relations;

·      physical working conditions (safe working environment);

·      salary( high level);

Motivation Factors, which motivate if present, are not responsible for job dissatisfaction, but they are considered as the cause of job satisfaction. They are next:

·      achievement (bonuses, Johnson medal award);

·      advancement (system of trainings);

·      recognition (system of promotion, rewards);

·      responsibility (executive and top management conferences, challenging projects).

Applying this theory to J&J we can see that Human Recourse department provides all four Motivation factors to increase job satisfaction, at the same time secures Hygiene factors in order to prevent job dissatisfaction.

SECTION IV

Evaluation of effectiveness

Training

Selling a franchise product in different countries using a same technique is never productive, hence it is a responsibility of the institution to identify a proper technique and adopt it so to benefit a sales growth. That is precisely what J&J has done - identified a method and adopted it.

I believe that by developing a unique training system J&J brings up the managers who as a result of a training campaign are able to work in a market around the globe. By delivering practical sessions where managers must face problems in a real situation, J&J helps them to gain experience much faster than it would be done through a theory lesson.

Assigning to different-level tasks is an absolute technique, helping the managers to become all-around developed. And the annual meetings during which the employees from all countries come together, as well as J&J inter-country's campaigns broaden the manager's knowledge of the global issues and ways to solve them.    

Selection

A multi-step approach, utilized by J&J, in order to select a potential employee, seems to be an expensive process with a waste of money. However this very process gives an opportunity to select the right person for a job.

The aim of the company is to identify the employee whose vision is the same as of the company rather than waste money onto a long process of selecting the individuals.

The primal interviewing makes the selective process of J&J more informative. Because the informal interviews ease the tense atmosphere during the first meeting of employer and the potential worker, with the same giving a chance for J&J team to learn more about the person.

The writing tests, concerning the personality of the potential employee, is another unique step of the selection. This very step gives an opportunity to identify those characteristics of the potential employee that he/she would not want to mention.

Recruitment

The way Johnson & Johnson recruits its potential employees is very productive. For instance its intercompany recruitment process first of all costs less and secondly requires delivering of none or little training to a newly recruited employee.

Campus Recruitment is very beneficial also, as with joining of graduates to the company the fresh views and more skills come.

Job Analysis

It is necessary to define job description and job specification accurately in order to fit the right person at the right place and at the right time. This helps both J&J team and employee understand what exactly needs to be delivered and how.

Both job description and job specification are essential parts of job analysis information. Writing them clearly and accurately helps Johnson & Johnson and its workers cope with many challenges.

Appraisal

In practice, it is very difficult to compare individuals possessing various individual traits especially where there is a large number of people employed by the company. Overall during such process employees are ranked according to their performance levels and hence rewarded based on the final evaluation.

I believe that due to both methods of appraisal (Ranking Method and Critical Incident Technique) J&J is well capable of identifying an objective basis for conducting a thorough discussion of an employee's performance.

SECTION V

Conclusion & Recommendations

As a company, Johnson & Johnson have fostered a corporate climate that rewards and recognizes diversity, safe and healthy work conditions and the importance of being good corporate citizens by embracing workplace safety and wellness, and protecting the environment.

Based on the information provided above, it is clearly seen that J&J is not afraid of spending money on Recruitment process, as one of its priorities is to find a perfect employee who shares the same vision and enthusiasm. However on researching the Human Resources Department in detail I would recommend the company to make a few changes to the ways it operates.

As it was mentioned already in Section II, J&J have created the unique system of training where its employees grow up within the corporation with the same studying it throughout. Hence the majority of the top-level managers and executives are brought up by the company itself. However, I believe, that letting directors from other companies to join the crew will help the corporation to expand its knowledge boundaries as well as "freshen up" the views and ideas of managing the business.

The second point that I would like to discuss is the selection process. In my opinion it is very long and scares off many potential candidates. Not everyone is sure that will be able to go through all the stages of such selective process. Hence my advice would be to combine the first and the second steps together (Preliminary Interviewing and Application Form session). Also I would recommend removing step three from the process, unless there is a particular reason for it. For instance: selection into top-level management.

SECTION VI

Job Interview Preparations

(adapted from J&J Careers)

How Do I Apply?

Experienced Job Seekers

Recruitment of full-time, experienced candidates occurs continuously as new jobs become available.

Search and apply for specific job openings, or provide a career profile to be considered for a broader range of job openings. You can also opt to receive e-mail alerts about new job openings that align with your profile or interests.

Student Job Seekers

Student recruitment takes place during specific months of the year, depending on graduation status. We recruit graduating students for full-time jobs between August and November each year. Internship and co-op candidates are recruited between December and February. It’s very unusual for student jobs to become available at other times.

Students must apply to specific job openings to be considered for employment.

Our student section can help you find job openings and programs that match your course of study and degree level.

Applicants with Disabilities

If you have a disability that makes it difficult to express your interest in a job through our online application process, or if you require TTY/TDD assistance, please contact us to tell us about your needs.

 

Preparing for an Interview

A job interview can be a great opportunity to consider your potential with us and to learn more about our people, culture and business strategies.

Consider the following suggestions as you prepare for an interview:

1.     Learn as much as possible about our businesses, values and culture before you meet with us. We like to know that you know who we are, what we stand for, and how your skills and experience may impact our businesses.

2.     Identify examples of your successes or applied leadership experiences, including accomplishments, results and lessons learned. Tell us how you feel this would add to your impact if you were hired.

3.     Be prepared to ask challenging questions of our team members. They can provide you with important information about how you’ll work with others, how your performance will be measured, and the resources you’ll have to cultivate your potential within our companies.

4.     Know what YOU stand for. Tell us about your aspirations and what type of difference you’d like to make in our world.

5.     Enjoy your time with us. Use your interview to gain experience, brush up on your interpersonal skills, and learn your own strengths and weaknesses. Our team members enjoy learning new things with every interview we conduct.

Other Questions 

If you still have questions about our application process or the use of this site, visit our Career FAQ / Contact Us page.  

                                            Graduates Page (adopted from J&J official website)

Bachelor's, MBA, and Graduate Jobs 

Who Qualifies as a Student?

To qualify as a student job seeker with us you must be in the last two years of a full-time degree program (BS, BA, MS, MA, MBA, or PhD) or have received one of these degrees during the past 12 months.

How Do I Apply?

The Regional Job Shortcuts below can help you identify job opportunities in your world region. The Search Jobs toolbar above can help you create a customized search and identify other job opportunities in your region. You can also learn more about job entry pathways within our companies down below.
 

Regional Job Shortcuts

·         Asia-Pacific • EMEA • Latin America

·         MBA and Graduates

·         North America

·         MBA and Graduates | Bachelor's

Internship and Co-op Programs

Connect you academic work with real-world business experiences, before graduation.

  

Leadership Development Programs

Find an accelerated path to leadership opportunities for graduating students.

Full-time Opportunities

Explore a broad range of full-time job opportunities for graduating students.

Our University Recruiting Cycle

We recruit university students on an annual cycle during specific months of the year. From August through November we are primarily focused on recruiting graduating students for full-time jobs. From January through March we recruit university students for internship and co-op assignments. In some countries we may also recruit for full-time jobs from January through March. Full-time jobs for graduating students rarely become available during other months.

Safe Working Environment

(adopted from J&J official website)

Protecting Our People

When you feel your best, you do your best. But when something is troubling or hurting you, it’s difficult to set those concerns aside and focus on work.

At Johnson & Johnson, we provide support programs and services to help our employees live healthier and safer lives – at work, home and on the road. This is good for our people and good for our business.

Our programs extend to employees’ loved ones, too. We understand that when loved ones are in harm's way, employees can’t help but be preoccupied and worried about them.

Our employees innovate, create, develop and improve our products every day. We strive to do what’s right for them.

More information can be found on Our Responsibility website.

 

	Mental Well Being Our Employee Assistance Program helps employees and their families face struggles that affect mental health and quality of life.
	Healthy People We offer many health improvement programs that strengthen our people and, ultimately, our business.
	Healthy Working Environment Our industrial hygiene, toxicology and occupational health programs ensure that employees who work with active pharmaceutical ingredients and other potentially hazardous materials are protected.
	HIV/AIDS Initiatives Our policy on HIV/AIDS assures confidentiality and non-discrimination of employees and their dependents living with HIV/AIDS.
	Workplace Safety We have a number of programs to help prevent injuries and to keep employees safe every day.
	Ergonomics How employees sit, move and lift while working can affect their physical health. Our ergonomics programs improve comfort and productivity.

Related articles: JOHNSON & JOHNSON 1: